INFLATION has stayed at 2.7 per cent for the third month, official figures showed yesterday.

The Office for National Statistics said the Consumer Prices Index was unchanged.

But some economists fear it could hit three per cent by the summer.

Price increases from four of the “big six” energy suppliers last month cancelled a fall in fuel costs. Household costs, which include gas and electricity, rose by two per cent between November and December.

While this suggests inflation has stabilised, we expect it to be the last reading for a while of CPI below three per cent

Economist Jeremy Cook

But petrol prices fell by 2.8p a litre over the same period.

Experts say food inflation is set to rise after poor UK harvests from last year’s severe wet weather.

Economist Jeremy Cook said: “While this suggests inflation has stabilised, we expect it to be the last reading for a while of CPI below three per cent.”